LEGAL SHIELD
Trustco spikes on sale of stake in unit
Trustco plans to sell 20% of wholly owned Legal Shield to US-based fund manager Riskowitz Value Fund
Trustco leapt more than 40% on Friday after the Namibian investment company detailed a related-party transaction to sell a significant stake in an important subsidiary for R1.2bn. Trustco said it would sell 20% of wholly owned Legal Shield to US-based fund manager Riskowitz Value Fund (RVF). Legal Shield owns Namibian insurance companies Trustco Life and Trustco Insurance with an investment segment that includes the group’s property, air services and strategic media services holdings. Trustco’s other investments – outside Legal Shield – span the banking, education and diamond mining sectors. At close of trade on the JSE, Trustco was 43.5% higher at R7.89. Its market capitalisation was up by almost R2bn. The share price spiked briefly at R9 on thin volume with fewer than 100,000 shares changing hands. The deal attributes a value of R6bn to Legal Shield, which dwarfs Trustco’s market capitalisation of R4.6bn at Thursday’s closing price before the deal was announced. RVF is aligned to ...
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